View more on these topics

SVM in retail fund drive

SVM Asset Management, the rebranded name for Scottish Value Management, has established an onshore Oeic consisting of three funds.

The company has traditionally focused on institutional funds and offshore products such as hedge funds. It now intends to establish a retail presence through the Oeic, which includes the UK 100 select fund.

This fund aims to outperform the FTSE 100 tracker funds through active management of FTSE 100 stocks. The fund manager, Andrew Kelly, will take a bottom-up approach to stockpicking. He joined SVM in 1996 after four years as a UK equity analyst at Standard Life.

Kelly and his team of nine analysts will pick around 25 stocks for the portfolio, concentrating on sectors such as financial services and retailers.

This fund may appeal to some investors in the current economic environment more than a tracker fund, which passively tracks an index. Standard & Poor&#39s tracker funds survey for 2002 concluded that tracker funds can be riskier than many investors believe. Investors think that they are diversifying stock-specific risk by tracking 100 companies, but Standard & Poor&#39s says the top 15 stocks in the UK make up 63 per cent of the UK stockmarket.

The SVM fund moves the investment risk away from the index and onto the fund manager&#39s stockpicking ability. Rejecting stocks is just as important as selecting stocks and with a small portfolio to play with, the fund manager cannot afford to make too many mistakes.

According to Standard & Poor&#39s, the offshore SVM UK 100 fund is ranked 23 out of 173 funds based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to September 23, 2002.

Recommended

UBS fund scours the US

UBS Asset Management has established its fourth UK retail fund, the US equity fund.The fund aims for capital growth by investing in between 80 and 90 US stocks. Around 65 per cent of the portfolio will consist of large caps and 35 per cent will go in to mid caps.Tom Digenan, a Chicago-based executive director […]

AITC says the worst is over for split sector

The collapse of the Aberdeen preferred income trust and the Dartmoor investment trust have brought the total number of split-capital trusts in receivership to six but the Association of Investment Trust Companies says the troubled sector is turning the corner.To date, a further 12 split-cap trusts have had trading in their shares suspended, with investors […]

Sandler attacks industry failure to motivate savers

The financial services industry must not view the prospect of pension compulsion as a redemption for its own failure to create demand for its savings products, warned Ron Sandler.In explaining why the compulsion issue was only touched upon in his report in July, Sandler told delegates at the CII conference that the industry has much […]

Northern Rock Lowers Rates

Northern Rock has lowered its rates for fixed and capped mortgages.The range of new products launched by the bank offers reductions of up to 0.7 per cent compared to the range launched at the end of August.Northern Rock&#39s standard two year fixed rate mortgage is available from 1.99 per cent a year with flexible fixed […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment